9.
Rationalist strategy?
Answer: Rationalist strategy consists of the following steps = process innovation:
- Describe
- Understand and analyse environment
- Determine a course of action in the light of the analysis
- Carry out the decided course of action
Difficult to appraise the real situation because of two reasons:
1. External environment is complex, involving competitors, customers, regulators, etc. It is
dynamic and fast changing, including technical, economic, social and political change
2. Managers in large firms disagree on their firms’ strengths and weaknesses in part because
their knowledge of what goes on inside the firm is imperfect.